>> this is "bbc world news." funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> at union bank, our relationship managers work hard to know your business, offering specialized solutions and

capital to help you meet your growth objectives. we offer expertise and tailored solutions for small businesses and major corporations. what can we do for you? >> and now, "bbc world news." >> hello, you are watching "gmt ." our top stories, david cameron gives a pledge to the british people. the will have a referendum on membership to the european union. the prime minister said the vote would come after renegotiation of the links to the european union. critics are saying that membership is not a pick and miss option. >> we would give the british people a very simple in or out choice. to stay in the union on these

new terms or to come out altogether. >> if you do not know this is really already, you will in the future. his surprise showing in the election could make him a key player in coalition talks. flash floods in the andes, supply is contaminated. also in the program, aaron is here with the latest business news. looks like a shy and is coming off of apple? >> we are looking at a shift in the technology world. apple shares bit more than 30% in the last few months. the new iphone is stumbling. the question is this, are the best days of apple behind them? >> it is 7:00 a.m. in

washington, 2:00 p.m. in jerusalem, 12 noon in london, where david cameron has said it is time to give the british people a choice about membership in the european union. the prime minister pledged to hold a simple in or out referendum by the end of 2017. but the catch is he may not be prime mr. by then. and there are already plenty of voices in your saying that membership is not like a menu where you get to pick and choose. our political correspondent reports. >> it had been a long time coming, but at last david cameron delivered his big speech in europe. he began with what had gone wrong. not everyone, he said, wanted ever closer european union integration, a more flexible approach was required. >> if we do not address these challenges, the danger is that

europe will fail and the british people will drift towards the exit. i do not want that to happen. i want the european union to be a success and i want a relationship to keep us in it. >> the prime minister said that the main problem was the growing gap between the union and its citizens, the disillusionment was at an all-time high in the uk. >> countries are different. they make different choices. we cannot harmonize everything. >> he said the solution was to try to claw back hours from the european union and, once that was done, put it to the people. >> once we have negotiated a new settlement, we will give the british people referendum with a very simple in or out choice to stay in the european union on these new terms or to come out altogether. it will be an inner out

referendum. >> pro-europeans were arguing that his tactics would not work. >> i am afraid that will not be acceptable to our partners in europe. they do not regard the european union as a cafeteria service in which you bring your own tray and then leave with what you want. >> hardline skeptics want a referendum now, not just the promise of one if david cameron happens to win the next general election. >> all of this is to say that if he wins the election, which looks unlikely, perhaps in five years' time we will get a vote. i do not want to wait for five years. >> the speech is a huge gamble, the referendum that may please skeptics in his own party, but renegotiating british membership will be a tough task at this time of great flux.

bbc news, westminster. >> european reaction to the proposed referendum has been swift. the french foreign minister says that it risks being dangerous for britain itself because outside of europe it would be difficult. the german foreign minister says that berlin wants them to be an active member, but that cherry picking policies is not an option. the president of the european parliament said that the speech was one of the worst he had heard in a long time. that is just some of the reaction. a german member of the european parliament, we will be going to him in a moment. thank you for being with us here on "gmt." dr. fox, and you can see the problem, can you? you heard it from europe.

there are not many people that david cameron can renegotiate with by the sounds of it. >> except for one thing, as a response to the eurozone crisis there will have to be a different relationship inside the european union. many countries want a different relationship from what currently exists. there is going to be changed. the status quo will not be an option. the idea of britain changing the dynamic is disingenuous, but there is going to be changed inside that relationship. we want the direction of travel to be different, a looser relationship. i have to say that whatever the reaction, the decision of what happens to the united kingdom and its people will be taken within the and and did kingdom and its people. >> there will have to be talks anyway, so why should britain not renegotiate its fleet with europe?

>> first of all, we have an agreement that is ratified by all member countries under a referendum. it was a compromise by the different member states. more opting out means a real cherry picking. there has to be reform. it has to become better, to become more competitive, to be sure that another crisis does not question the accountability on the european level. we have seen the fiscal compact, and i think we have to not renegotiate, but make europe better. >> what many people in britain says that we did not understand is that david cameron once a flexible, adaptable, open

europe. what is wrong with that? >> this is a community of wall. we have common agreements. you can become a norwegian status, with a flexible solution, but if you stick to the internal market, it is an equal playing field with the same rules. otherwise everyone does what he wants. >> all right, dr. fox, there it is. there is one suggestion, the norwegian option. >> that is not the option we would like. we would like to see all of europe becoming more flexible. the global economy has doubled in value since 2000. how much of that has been seen in europe? very little. they're too many regulations, too much legislation, and the trouble with the european union at the moment is that it is too

inward looking, it should be talking about how it becomes more competitive on a global basis. if these companies are going to want an ever closer union as a result of the problems created by the euro, why should britain not want to take advantage of the changing your pandemic to give britain a chance to become more competitive? the changes going to happen. we want that changed to be a direction that suits the british people. >> i can see you gesticulating. did you want to come in? >> we have become competitive within the european union. germany has given the example, we were able to become competitive. we of a higher debt ratio the most of the member states in the eurozone. higher unemployment questions.

this has nothing to do with the european union, other countries have shown that you can be successful within the european union. here we would like to cooperate with britain, as germans we would like to have them in, but to change the conditions of the treaty, we would do better through legislation. >> dr. fox, you are on the record as welcoming this speech, but some will question what is your welcoming. for starters, we do not know what the renegotiated union would look like. on the one hand there is not much to negotiate about, and on the other hand it could be as far away as five years' time. >> what is important about this is we have a british prime minister who says -- why do we have to stick to the concept of a union at all? an important break that i

welcome. what is wrong with the common market? from going back to the concept of the customs union? not having the legislation of doctors hours? he said that we would want to renegotiate a package in light of the changes already happening in europe. he said the british people will get their first saying since 1975. we have waited a long time for the british prime minister to say with david cameron said today. >> think you both for being on "gmt." israel, negotiations have begun to form a new coalition government after benjamin netanyahu failed to win an outcry majority in tuesday's general election. the alliance ended the day with fewer seats in parliament, losing around one quarter, but remaining the largest group.

the centrist party was the surprise of the night. katya? >> benjamin netanyahu certainly got a bloody nose in those elections yesterday, his pre- election slogan, strong leader for strong israel, rings rather hollow. clearly many israelis did not like his leadership style, many felt he was too arrogant and out of touch and they shouted loudly for change. that will what impact the domestic policy. one out of four people in this country are living in poverty. it will also affect how they move forward on the crisis around the iranian nuclear program and the israeli palestinian crisis, whether they will move towards restarting long stalled peace talks. you can see the signal -- the

city walls behind me there. the political makeup of the future coalition government will impact them and how it moves on those policies. there is a lot of wheeling and dealing that has been going on for quite some time. my colleague reminds us that the ups, downs, excitements, and disappointments that come with election results for started coming out. >> technically the israeli prime minister, benjamin netanyahu, was just about the winner in this election, but it did not feel that way. after weeks of a suggested victory, the support dwindled, and mr. netanyahu faces a struggle to form a government. >> our main priority is strong security in the face of this strong support. our first challenge is and remains preventing iran from

obtaining nuclear weapons. >> voters seemed to focus on social issues, the cost of living, and the economy. among the main benefactors for the centrist future policy party. >> a great responsibility was put on our shoulders tonight. from jerusalem to tel aviv, air ever where we stop there was always someone who stood up and said -- do not forget us when you get there. >> the man that many had said would be the rising star of the election, a software millionaire to the right of benjamin netanyahu, does not seem to have hit the heights that his supporters had hoped for.

but like the leaders of all the parties, he will be in the mix of a future coalition of some sort. >> election night itself prove far more exciting than the rather lackluster campaign suggested. but the country now places weeks of political horsetrading so that someone can try to build a coalition and form a government. >> benjamin netanyahu is still the best place to form the government, but his aunt -- invincibility has gone. it may take people from the right, the center, or both to help him out. this will determine the direction israel takes in this ever volatile and unpredictable middle east. >> the shake-up we are now seeing on the israeli political scene is critical, but this is not the israeli equivalent of

the arab spring that we are seeing elsewhere in the region. benjamin netanyahu is expected to remain the prime minister. can he pull it off after being so humiliated at the polls? last time he slid into that position, and he shot to great glory of our. an experienced politician and a pragmatist, he will be determined to pull it off again. >> thank you very much. aaron is here with business news. what was it that you said? are the best days of apple behind them? what are the problems? >> we are still talking about the most valuable public company in the world, but investors are saying that apple may have painted itself into the corner with the high-priced iphone. other smart phones out there pretty much do exactly the same thing. cheaper. that could be a problem. the giants of the tech world,

apple has announced its results -- will announce its results later today. it is expected to report its first fall in profits in a decade. all on worries that sales of the little baby right there, you just saw it, the iphone has been coming in second. apple stock is down nearly 30% from its peak, when they launched the new iphone 5. the outline is the head wind that they have been facing. >> if you go back to last year, the trial against samsung, they 1 $1 billion, but lost something more significant, public good bit brigid public good will. with companies like blue will out-innovating apple right now, they are following up with the

ipad mini. they now appear to be following the market instead of leading it. bid toprime minister's redefine the british relationship with the european union has many worried, which is no surprise. why? half of all goods and services produced by british companies are exported to europe. the 0.5 million jobs are linked to this trade. the impact on employment would be a key concern. but we should not forget that the u.k. is important to europe as well. if you look at exports and imports, they do more business with the u.k. than any other country, including the united states. this may also surprise you, britain over to france and the u.s. to become germany's single

largest trading partner. their combined trade with the u.k. in the first nine months of last year was $203 billion. what is it that these ceos want? >> they do not want to leave the euro. free trade is critically important. cameron was positive in the comments he made and made it clear that he wants a new treaty but the way that he positioned it was for europe, not just the uk. >> i should say that the french foreign minister welcomes all british business to france, if they were to leave the european union. >> get it in there. >> get it. >> thank you very much. much more to chew over here on "gmt." find out why this well-dressed gilt ended up in court in

sydney. the head of the united nations has said that they should not participate in mali. they are concerned that it might staff across the region in -- at risk of reprisals. >> a burned out truck, apparently the result of french firepower, germany is now back in government hands. very happy, the population is very happy the we have been freed from hazard. >> more than 2000 french troops are in mali.

the entire operation has been planned and executed extremely quickly. france and their leading counter-terrorism judge, investigating counter terrorist groups in north africa, said the mission started as an emergency response. >> imagine all of these islamist groups. >> the head of the united nations has praised the french military intervention, but said the u.n. itself must keep out of the conflict. >> we have also praised our civilian personnel in the region. >> molly has now received more international attention than it has in decades. but there are no quick fixes to its problems.

♪ >> the top stories this hour, the british prime minister, david cameron, has plans to hold a referendum on membership for britain in the european union. benjamin netanyahu, the israeli prime minister, says that a broader government as possible after winning fewer seats than expected in the general election. i and she lay, more than 2 million people of santiago -- in chile more than 2 million people of santiago have been left without water. many offices and businesses had to shut their doors. >> first thing in the morning and this is what thousands in

santiago woke up to. the problem started here in the mountains, high above the capital. flash floods, landslides, tons of mud flowing down a river. forcing them to close. much of the city's water supply was switched off. >> we did not know the water would be cut off. no one said anything. later when we went to get water, there was nothing there. >> authorities provided emergency supplies. they were needed. it is the height of summer here and during the day the temperature is 30 degrees centigrade. the president stepped in and told the water company to get its act together. >> i take this opportunity to urge you to resolve this problem. it is affecting 2 million have a chance of the capital. you know what the problem is.

but according to the plan, before the day is over the problem will be resolved. >> the day is well over and the problem has not been fully resolved. but the taps are slowly being turned on again. they promise people the thing should be back to normal within hours. bbc news, santiago. >> a court room in sydney, australia, has given literal meaning to the expression of trying to get your goat. because of his appetite for the flowers outside the museum of contemporary art, the goat was booked by police. he has had his day in court and the chance to clear his name. >> taken to court for grazing in the wrong place. gary the go was in sydney last august and booked for eating flowers outside the museum of

contemporary art. his owner, a comedian, was hit with a fine of $464. the case quickly went viral, with the goats facebook page attracting more than 9000 followers. the charismatic ago showed only a moment's hesitation outside of court. the outcome was positive. a magistrate dismissed the charges and ruled that there was no evidence that gary had visited the museum with the intention of destroying the vegetation. >> we were taught a valuable lesson about biting off more than you can shoot. >> gary made no comment on the verdict. he was simply enjoying his latest meal. bbc news. >> [laughter] a reminder of our top story here on "gmt," david cameron is delivering what has been viewed

as the most important speech of his career, a referendum on britain and the european union. liam fox said that the eurozone crisis has already and it has forced britain to reevaluate. more to come, to stay with us. >> make sense of international news at bbc.com/news. >> funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> at union bank, our relationship managers work hard to understand the industry you

operate in, working to nurture new ventures and help provide capital for key strategic decisions. we offer expertise and t